[Abstract] the Internet market has entered a consolidation stage, investors are growing tired by a price war to snatch users.

Tencent Francisco November 5th news, foreign media Wednesday pointed out that if you want to understand China Internet market M & a current why so popular, and in the short term no signs of slowing, carefully consider the marriage of two Chinese tourism website, can be found clues from.

whether public quarrel, or sacrifice profits to draw users in the rapid growth of China tourism market, where the network and Ctrip has been bitter rivals. But according to sources, where large shareholders of Baidu, but forcing where marriage network and Ctrip, and let the latter control of the combined company. The source said, where the network management is only two days before the announcement of the transaction, the company had to be merged with Ctrip news.

in the emergence of a large number of startups, and attracted to the scale of investment risk after reaching a record high, China Internet market has entered a consolidation stage, because investors have more and more tired by a price war to snatch users. Investors are more urgent hope that companies can achieve profitability. Bloomberg data show that this year, China’s M & a scale has reached $413 billion 200 million, an increase of 75% over the same period last year. Among them, the scale of mergers and acquisitions from the Internet industry reached $55 billion 600 million, an increase of nearly three times over the same period last year.

Arete Research Service analyst in Hongkong Li Muzhi (transliteration: Li Muzhi), said investors and venture capitalists have begun to worry about the sustainability of these models. Whether you are a founder or a member of the professional management team, as long as investors say no, it is not."

China’s three largest Internet Co – Tencent, Baidu, Alibaba group – is driving the integration of the Internet industry. Mergers and acquisitions in China’s Internet industry, the three companies accounted for more than 40% of the share. The three companies have funded a number of domestic Internet start-ups. Now, they are to integrate the niche market division.

transaction doubled

China’s Internet industry mergers and acquisitions wave began in February this year. At that time, Alibaba group and Tencent announced that there is a relationship between the taxi drops and quick taxi merged into a bit fast, the formation of the new company has become the Uber in the Chinese market, a larger competitor. Then, in April 58 city classifieds provider announced the acquisition of rival Ganji holding shares, and received funds from the Tencent. Last month, the group announced the purchase of the United States Mission network announced a merger with the public comment network, the establishment of a $15 billion valuation of the network giant. The two companies had previously been supported by Alibaba group and Tencent.

and China’s Internet industry mergers and acquisitions tide appears at the same time, this year, the risk of investment in the Chinese market extreme >